Abu Dhabi Securities Exchange partners with FTSE Russell to create new benchmark indices

The Abu Dhabi Securities Exchange (ADX) and FTSE Russell have partnered to develop co-branded indices, supporting the exchange’s recently launched derivatives market.

As of January 10, 2022, the FTSE ADX General Index is replacing the ADX General Index, and FTSE ADX sector indices will supersede the existing sector indices.

ADX has partnered with FTSE Russell to launch FTSE ADX index series, becoming the first exchange in the GCC for which FTSE Russell is the benchmark index administrator, and further strengthening the UAE’s capital markets. pic.twitter.com/VbMkuhH8G3

— مكتب أبوظبي الإعلامي (@admediaoffice) January 10, 2022

ADX is the first exchange in the region to make FTSE Russell its index administrator, according to Abu Dhabi Government Media Office.

Further new indices will also be co-developed under the partnership to support ADX’s vision of introducing tradable new index products on its market. The exchange launched single stock futures in the fourth quarter of 2021 following an agreement with NASDAQ in September to deliver matching, real time clearing and settlement technology.

Saeed Hamad Al Dhaheri, chief executive officer of Abu Dhabi Securities Exchange, said: “Our partnership with FTSE Russell is part of ADX’s wide-ranging strategy to develop a dynamic exchange, which includes investment in state-of-the art market technology and increasing the opportunity set for investors and issuers. The new range of FTSE-ADX indexes will provide robust benchmarks and support the listing of index derivatives, ETFs other index-based products on the exchange.”

ADX’s benchmark index, the ADI, crossed the 9,000-point threshold in 2021 for the first time. The benchmark gauge rose 68 per cent last year, while the exchange’s market capitalisation more than doubled to Dhs1.6 trillion with net foreign investment reaching Dhs15.2bn.